Articles Published in: 2021

April 14, 2021

FHA Home Loan Resources For First-Time Buyers

Are you thinking of purchasing your first home? An FHA mortgage can be a great help with its low downpayment requirements, borrower-friendly terms, and the ability to freely sell or transfer ownership of the home if needed. First-time home buyers often aren’t sure where to start gathering resources for their home loans in the planning and saving stages. Here are some of those resources that can help you get started on the journey toward owning your own home. FHA Home Loan Local Down Payment Assistance Programs FHA loans permit down payment grants, and you may be able to find one in your local area using this Downpayment Grant resources list broken down by state. FHA Mortgage Loan Calculators FHA mortgage loan calculators can help you determine a rough estimate of | more...

April 13, 2021

Buy Your First Home With An FHA Mortgage

By Joe Wallace

Do you want to purchase your first home? Borrowers looking for a starter home often turn to the FHA loan program because of its low 3.5% down payment requirement for borrowers with qualifying FICO scores. And thanks to protections for the borrower such as no penalty for early payoff of the loan and the ability to refinance the FHA mortgage into a new FHA loan that can result in a lower mortgage rate or monthly payment when using an FHA Streamline Refinance loan. Qualify For An FHA Mortgage What do you need to qualify for an FHA loan? For best results, at least two years in the job market and FICO scores that are in the 600s or better. FHA loan rules say you can technically qualify for an FHA | more...

April 12, 2021

Low Down Payment Construction Loans For New And Repeat Borrowers

By Bruce Reichstein

Are you interested in building your home from the ground up? A loan called the One-Time Close construction mortgage can help you as a first-time home buyer or as an experienced borrower. You don’t have to be a first-time borrower to take advantage of a low-down payment or even a zero down payment home loan you can use to build a house on your own lot. Among the first questions you are likely to ask about this type of loan? How much you’ll be required to provide as your down payment. And the answer you get depends on what kind of construction mortgage you seek. Do you know how much money you need to save up for a down payment? That depends on the nature of your mortgage; VA, FHA, | more...

April 9, 2021

Why Loan Applications Are Denied

By Joe Wallace

What makes a borrower worthy of home loan approval? A history of on-time payments, a low debt ratio, and good credit scores all work together to get you home loan approval. But what gets you denied a mortgage? Reasons For An FHA Loan Rejection Your lender is required justify approving a home loan. There are three things the lender will review (among others): Verify that you have sufficient income for the monthly mortgage obligation; Determine that the borrower can afford existing debt and the new mortgage payments Ensure the applicant has a history of responsible credit use. What factors contribute to the lender’s decision when reviewing these three areas? We’ll explore them below. Credit Scores Matter On paper, FHA loan rules allow loan approval for borrowers with FICO scores between | more...

April 7, 2021

FHA One-Time Close Mortgages Compared To VA One-Time Close Construction Loans

By Bruce Reichstein

Lots of people are interested in building a home using a One-Time Close construction mortgage (OTC). This is a great option for military officers, career enlisted members, military retirees, and veterans who want to construct a new home rather than buying somebody else’s house. These construction loans are offered by both the VA and FHA loan programs. But which is better for those who have the option of applyinf for a VA mortgage? Who VA Loans Are For VA loans and the VA One-Time Close construction loan program are intended for veterans and currently serving military members with qualifying minimum time on duty. Surviving spouses (of military members who have died as a result of military service) may also qualify to apply for the VA loan program. FHA loans, including | more...

April 6, 2021

Fair Housing Month 2021

By Joe Wallace

April is Fair Housing Month, and the 2021 Fair Housing Month campaign organized by the Department of Housing and Urban Development has a theme; Fair Housing: More Than Just Words. It’s meant to call attention to Fair Housing law in America, the rights of all house hunters and potential renters, and why discrimination in the housing industry is still a serious issue. This year’s theme is meant as a commitment “to advancing equity in housing and the importance of increasing public awareness of everyone’s right to fair housing” according to a press release issued by HUD official site. All Americans have the right to equal access to affordable and safe housing. HUD Secretary Martha Fudge says even in a time when there is greater attention on Fair Housing type issues, | more...

April 1, 2021

FHA Refinance Loan Advice in 2021

By Bruce Reichstein

Are you considering applying to refinance your home loan? Which refi option is the right choice? Some people seriously consider a refinance loan without knowing all the options–some kinds of refinancing are more appropriate for some needs than for others. How to select the right loan for your needs? It’s one of the first hurdles you’ll clear when learning about refinancing. Borrower choices include cash-out refinancing, FHA Streamline refi loans, and FHA 203(k) Rehabilitation refinance loans for those who want to refinance and remodel the home at the same time. Refinancing Non-FHA Mortgages Generally speaking, FHA refinance loan rules permit an FHA-to-FHA refinance loan, but also options for non-FHA-to-FHA refinance loas. The FHA refinance loan program allows you to get out of a higher interest rate conventional mortgage into a | more...

One Time Close Mortgage Loans: The Base Home Sales Price

March 31, 2021

One-Time Close Construction Loans: Loan Limits

By Joe Wallace

Are you a house hunter who has gotten tired of looking at other people’s dream homes? Do you want to build your home instead of buying someone else’s? The One-Time Close construction loan is a good option for this; the One-Time Close loan eliminates the need for a second loan application and approval process compared to some other types of construction loans. There is more than one type of One Time Close mortgage to choose from–you could be eligible for a One-Time Close construction mortgage in multiple programs. Do you know which one is best for you? USDA One-Time Close Construction Loans We start with the need-based construction loan program offered by the USDA. The USDA One-Time Close construction loan program was created for borrowers on restricted incomes. This construction | more...

March 30, 2021

What Can Kill An FHA Home Loan?

By Bruce Reichstein

Those who want a home loan have to prepare for the new loan application in several ways–financially, through saving up for the down payment and closing costs, and with credit prep. That can mean working on your record of on-time payments, lowering your overall debt amounts, and avoiding new credit in the meantime. When applying for any large line of credit, there are some things that can stop your loan dead in its tracks. If you want a home loan and are worried about being approved for a home loan, add these issues to your mental not-to-do checklist and make sure you know how to avoid them. Avoid New Debt Your lender pulls your credit when you apply for your home loan–most people know that. But not as many know | more...

FHA Construction Loan Rule Changes In 2021

March 29, 2021

VA One-Time Close Construction Loans For Veterans

By Joe Wallace

Military members and veterans alike do well to explore their One-Time Close options to build a home instead of buying an existing house. There is an FHA One-Time Close loan veterans can use, but there is also a VA One-Time Close construction loan that is more idea for military members and veterans due to the zero-down option for the VA construction loan. Veterans and currently serving military members who are on the fence as to whether they should build or buy should explore their One-Time Close options in addition to looking for existing construction. The VA One-Time Close construction loan, sometimes referred to as a single close construction loan, can provide a distinct financial advantage for military families, retirees, and those who are about to retire or separate from military | more...